CHAP 5 (contracts)

Question 1

Interpretation of a contract

Answer 1

DETERMINATION of the MEANING OF THE TERMS OR WORDS used by the parties in their WRITTEN CONTRACT

Process of ASCERTAINING the INTENTION OF THE PARTIES from the WRITTEN WORDS contained in their contract

Question 2

Cardinal rule

Answer 2

INTENTION OF THE PARTIES MUST PREVAIL

Question 3

Contracts of Adhesion

Answer 3

Wherein MOST OF THE TERMS OF WHICH DO NOT RESULT from MUTUAL NEGOTIATION between the parties as they are USUALLY PRESCRIBED IN PRINTED FORMS prepared by one party to which the other mat “adhere” if he chooses but which HE CANNOT CHANGE